He said the US CPI rose 0.4 per cent in August, against an expected 0.3 per cent, taking the year-on-year rate to 1.9 per cent, when the market had expected 1.8 per cent.

“The core measure was up 1.7 per cent year-on-year, versus the 1.6 per cent expected,” he said in a morning note.

“The US dollar index is down 0.4 per cent on the day ... (while the) AUD reversed its Australian jobs data gains, falling from 0.8010 to 0.7956 before retracing in New York to 0.7995.”

Locally, there are no major risk events but overseas, US August retail sales are expected to increase just 0.1 per cent following a 0.6 per cent jump in July. “Westpac forecasts a 0.3 per cent gain with stronger consumption growth continuing into the third quarter.”

He said the local currency could rise a little higher on Friday. “(But) fresh North Korean headlines plus any lingering effects from the US inflation data should cap it at 0.8020 today.” The Aussie dollar is also lower against the yen and the euro.